Semi-Annual Report on FIP
Operations
Mafalda Duarte, Program Manager
May 15, 2015
FOREST INVESTMENT PROGRAM (FIP)
FIP Overview
600
500
501.3
400
296.6
300
208.4
200
100
38
17
12
13.9
0
Total endorsed
SC Approved
Funding (USD M)
Total endorsed
Funding (USD M)
Projects
501.3
38
Endorsed Investment Plans (8)
420
25
MDB Approved
Disbursed
Projects
Endorsed DGM concepts
50
9
Endorsed Private Sector Set‐Aside Concepts
31.3
4
FOREST INVESTMENT PROGRAM (FIP)
Strategic Issues
1) FIP is expanding to new pilot countries and to new projects and programs in existing
FIP pilot countries
2) The CIF AU, in collaboration with MDBs, is seeking to better understand ways to
strengthen private sector engagement in the FIP;
3) Further clarification on the role of the FIP in the phased approach to REDD+;
4) Understanding current delivery rates for FIP funding approval, including progress in
the DGM;
5) The FIP reporting agenda is in implementation and the CIF AU is acquiring capacity to
support country results reporting;
6) Planning continues for the upcoming FIP Pilot Countries Meeting in Kinshasa, DRC
CRITERIA & PROCESS FOR ACCESSING FIP RESOURCES
(1) Expansion of the FIP: new pilot countries
Eligible countries submit EoIs
Independent Expert Group Established
Expert Group assesses EoIs & prepares recommendations
FIP Sub‐Committee selects new pilot countries
Scores of the 36 EOIs based on the Expert Group’s assessment
9
6
MENA
3
LAC
ECA
Asia‐Pacific
Africa
4
90
80
70
60
50
40
30
20
10
0
Mozambique
Ecuador
Guatemala
Congo Republic
Nepal
Ivory Coast
Tunisia
Bangladesh
Zambia
Cambodia
Cameroon
Guyana
Honduras
Rwanda
Uganda
Madagascar
Morocco
Sudan
Nicaragua
Belarus
Uruguay
Ethiopia
Kenya
Kyrgyz Republic
Afghanistan
Turkey
Tanzania
Vanuatu
Benin
Dominica
Samoa
Haiti
Jordan
Montenegro
St Lucia
Togo
14
Category 1
Category 2
Category 3
Category 4
FOREST INVESTMENT PROGRAM (FIP)
(1) Expansion of the FIP: new projects
Pilot countries submit Project/Program Concept Notes
Country
EAP Lao PDR
LAC
Brazil
Peru
AFR Burkina Faso
DRC
Ghana
Independent Expert Group Established
Expert Group assesses Concept Notes & prepares recommendations
FIP Sub‐Committee selects new projects/programs
MDB
Grant
USD M
Loan
USD M
Concept Note Title
Assessment
100 Point Total
IBRD & IFC
IBRD
IDB
24.5
0
Scaling Up Sustainable Forest Management Project 78
40.0
5.0
0
0
Integrated Landscape Management in the Cerrado Biome Ecological Restoration Financing in the Cerrado Biome
74
72
IDB
2.0
7.5
66
AfDB
8.0
0
High Value Native Timber Reforestation On Degraded Lands In The Peruvian Amazon
Sustainable Management of the Fuelwood Sector AfDB
7.0
3.0
51
IBRD
10.0
0
Support Project for the Development of Agroforestry in Four Provinces Reducing Degradation and Deforestation due to Mining In Forest Landscapes 61
71
FOREST INVESTMENT PROGRAM (FIP)
(2) Private Sector engagement in the FIP
Strengthening private sector engagement in the FIP:
Study (co‐funded with IBRD), Stimulating private sector engagement in REDD+ sustainable forest management and landscape restoration efforts
• to broaden the understanding of how productive uses of forests and forest products could significantly contribute to increased climate change mitigation outcomes
• to identify options for enhanced private sector REDD+ sustainable forest value chain and landscape restoration investment efforts and engagement strategies.
Innovative approach to engaging the private sector:
Strategic Climate Fund (SCF) Private Sector Facility  Enables a robust pipeline of innovative private sector projects and programs across SCF
 A first come, first serve approach  Eligibility open to more countries
 One pool of fungible money and a single facility avoiding separate program calls for proposals  Economies of scale & improved process efficiency
FOREST INVESTMENT PROGRAM (FIP)
(3) FIP in the wider REDD+ architecture
FIP is considered the “REDD+ Missing Middle”
Phase I READINESS




Policy and strategy
Capacity building
Consultations
Social inclusion
Phase 2
IMPLEMENTATION




Investments in low carbon development
Sustainable forest management
Smart agriculture
Green value chains
2 studies to better understand the
FIP’s relationship and position within
REDD+:
(1) Linkages between REDD+ Readiness
and the Forest Investment Program
(2) Linkages between the FIP and
Performance based mechanisms
(Agenda Item #)
Phase 3
RESULTS‐BASED PAYMENTS



Poverty alleviation and shared prosperity Mitigation outcomes
Adaptation measures
50% of resources are allocated to enhancing The other enabling environment nearly 50 % is allocated to for forest landscape site‐specific management demonstratio
and n investments conservation and enhancing forest monitoring
FOREST INVESTMENT PROGRAM (FIP)
(4) Variance in delivery rates for FIP funding approval
Indicative Allocation and FIP Funding Approvals by FIP Pilot
(USD Millions)
 Burkina Faso, DRC, and Mexico 100% FIP funding approval 80.00
70.00
 Mexico, Burkina Faso and DRC – 100% MDB approval as well
60.00
50.00
40.00
30.00
20.00
10.00
0.00
USD M Indicative
Allocation
USD M Funding Approved
 FIP Funding Approval expected to increase by USD 117.24 million to a total USD 413.19 million FIP approved by end FY15
FOREST INVESTMENT PROGRAM (FIP)
(5) FIP reporting agenda in implementation
•
FIP results reporting is now an integral part of the FIP operational cycle & the first round
of results reports submitted used a diverse range of methodologies for greenhouse gas
(GHG) accounting
•
Study commissioned: comparative analysis of the ex-ante GHG emission reduction
accounting methodologies used in FIP projects. Recommendations are expected to help
harmonize ex-ante and MRV GHG emission reduction accounting for FIP projects.
•
The CIF AU has acquired greater capacity in order to support country results reporting
beyond the support provided by MDBs and has already agreed to support Lao PDR.
(6) Knowledge Management Update
•
Planning continues for the upcoming FIP Pilot Countries Meeting in Kinshasa, DRC in
June 2015, in conjunction with the Government of DRC.
FOREST INVESTMENT PROGRAM (FIP)
Implementation Status of FIP
# of projects under
development for
submission to FIP Sub‐
Committee
12
12
1
# of projects with FIP
Sub‐Committee
funding approval
being processed for
MDB approval
# of projects with FIP
Sub‐Committee
funding approval and
MDB approval
 All FIP Investment Plans endorsed
 5 projects under implementation and disbursing  Pipeline is active, FIP funding approval request steadily flowing in
FOREST INVESTMENT PROGRAM (FIP)
Co-financing in FIP
In endorsed FIP investment plans (in preparation and FIP funding approved)
13.8
1%
94
9%
Co‐financing Partners:
398.7
38%




472.7
45%
69.4
7%
Government
Private Sector
MDBs
Bilaterals
Leverage Ratios
Based on projections (IP stage)
1:2.2
Based on approved projects
1:2:8
Others





Governments
MDBs
European Commission
Agence Francaise de Development GEF
JICA
FCPF
KFW
Moore Foundation
www.climateinvestmentfunds.org @CIF_Action
https://www.youtube.com/user/CIFaction
https://www.flickr.com/photos/cifaction/sets